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IRS announces further details of tax credits available to help small businesses…

The Internal Revenue Service and the Treasury Department announced further details of tax credits available under the American Rescue Plan to help small businesses, including providing paid leave for employees receiving COVID-19 vaccinations.

The additional details, provided in a fact sheet, spell out some basic facts about the employers eligible for the tax credits. It also provides information on how these employers may claim the credit for leave paid to employees related to COVID-19 vaccinations.

Eligible employers, such as businesses and tax-exempt organizations with fewer than 500 employees and certain governmental employers, can receive a tax credit for providing paid time off for each employee receiving the vaccine and for any time needed to recover from the vaccine. For example, if an eligible employer offers employees a paid day off in order to get vaccinated, the employer can receive a tax credit equal to the wages paid to employees for that day (up to certain limits).

Click here to read the full article

IRS to recalculate taxes on unemployment benefits…

Dear Clients & Friends, the IRS has announced that they will start sending out the refunds in May for recalculated unemployment returns that have been filed. Click here to read more.

As always, please feel free to reach out to your H&S tax professional with any questions!

Tax Filing Season Begins February 12th!

The IRS has announced that the 2021 tax filing season will begin on Friday, February 12th. Expecting a refund? Click here to read more on how the IRS plans to speed up the refund process amid the pandemic. Make sure to check out their tips for taxpayers below on how to make filing easier:

To speed refunds and help with their tax filing, the IRS urges people to follow these simple steps:

  • File electronically and use direct deposit for the quickest refunds.
  • Check IRS.gov for the latest tax information, including the latest on Economic Impact Payments. There is no need to call.
  • For those who may be eligible for stimulus payments, they should carefully review the guidelines for the Recovery Rebate Credit. Most people received Economic Impact Payments automatically, and anyone who received the maximum amount does not need to include any information about their payments when they file. However, those who didn’t receive a payment or only received a partial payment may be eligible to claim the Recovery Rebate Credit when they file their 2020 tax return. Tax preparation software, including IRS Free File, will help taxpayers figure the amount.
  • Remember, advance stimulus payments received separately are not taxable, and they do not reduce the taxpayer’s refund when they file in 2021.
CPA's & Business Advisors

Casualty Loss Instructions

As a result of the flooding in the Mt. Pleasant and Midland areas this June, H&S Companies wants you to know we stand ready to help! If you suffered damage to your home or personal property, you may be able to deduct the losses you incurred on your federal income tax return. Here are a few tips you should know about deducting casualty losses:
Casualty Loss:  You may be able to deduct casualty losses based on the damage done to your property as a result of the flooding.
Normal wear and tear:  Casualty loss do not include losses incurred from normal wear and tear to your property.
Covered by insurance:  If your property was insured, you must file a timely claim for reimbursement of your loss. If you don’t, you cannot deduct any casualty losses as a result of the flooding. You must reduce any losses by the amounts of any reimbursements you have or are expected to receive from your insurance company.
When to deduct:  As a general rule, you must deduct the casualty loss as a result of the flooding when you file your 2017 tax return. However, if Isabella and Midland counties get declared as a federal disaster area, you may have a choice of when to deduct the loss. You can choose to deduct the loss on your 2017 return or on an amended 2016 return. Claiming a disaster loss on the 2016 return may result in a lower tax for 2016, often producing a refund.
Amount of loss:  You figure the amount of your loss using the following steps:

o Determine your adjusted basis in the property before the flooding. For property you buy, your basis is usually its cost to you.
o Determine the decrease in fair market value, or FMV, of the property as a result of the flooding. FMV is the price for which you could sell your property to a willing buyer. The decrease in FMV is the difference between the property’s FMV immediately before and immediately after the flooding.
o Subtract any insurance or other reimbursement you received or expect to receive from the smaller of those two amounts.

10 percent rule:  Casualty losses on personal-use property must exceed 10% of your adjusted gross income.
Future income:  Do not consider the loss of future profits or income due to the casualty as you figure your loss.
Business or income property:  Some of the casualty loss rules for business or income property are different than the rules for property held for personal use.

For more information regarding casualty losses, please visit the IRS website here for further details and instructions: https://www.irs.gov/taxtopics/tc515.html

As always, feel free to give us a call at 989-817-4900 or check out our Mt. Pleasant location page and reach out to one of our CPAs!

CPA's & Business Advisors

IRS phone scammers caught!

IRS scams have been a big problem over the past few years, and it doesn’t seem to be slowing down. Luckily, this group of phone scammers were caught!

Just remember that the IRS will never call you and ask you to wire money. They will never email you telling you what you owe. And they will certainly never threaten you!

If you ever have a situation where you are unsure of its legitimacy, please don’t hesitate to call us – we are here to help!

Click here to read the article from the Detroit Free Press

CPA's & Business Advisors

IRS Warns of FAKE Emails…

Beware! The IRS and Security Summit Partners now warn of fake tax bill emails!

The tax bill may claim to be related to the Affordable Care Act. The IRS has received several reports of scammers now sending out fraudulent versions of CP2000 notices for the 2015 tax year via email. Generally, the scam involves an email that includes the fake notices as an attachment.

You can read more by clicking the image below. As always, please reach out to us with any questions!

Click to Download

Click to Download

 

CPA's & Business Advisors

What Employers Need to Know…

…about the Affordable Care Act, that is! Click the image below to download this one-pager from our friends at the IRS for some very helpful information and links regarding employers and the ever-confusing Affordable Care Act!

Still have questions? No problem, that’s what we’re here for. Please contact one of our qualified CPAs today! Check out our locations page for one near you.

Click to Download

Click to Download

 

CPA's & Business Advisors

Are you an applicable large employer?

With the Affordable Care Act there are certain requirements of you if you’re an applicable large employer. If you’re not sure, well, no fear, there are steps you can take to determine if you are one or not. Click the image below to download a helpful one-pager that the IRS has put together on this very topic. There are active links that take you directly to further information, should you need it!

As always, H&S Companies is here to guide you through the tax jungle. Please contact one of our many qualified CPAs or Accountants with any questions. Take a look at our locations pages to find someone near you.

Click to Download

Click to Download

 

CPA's & Business Advisors

Thieves stole tax info from IRS!

USA Today released an article on May 27th saying thieves hacked into an Internal Revenue Service online service, coming away with the tax information from more than 100,000 taxpayer accounts.

Click the link or image below to read the full article:

http://www.usatoday.com/story/money/personalfinance/2015/05/26/irs-breach/27975205/

thief graphic

Click here for the USA Today article: IRS says thieves stole tax info from 100,000

 

CPA's & Business Advisors

Some Non-Profits Asked to Complete Self-Declarers Questionnaire



irs-questionnaire-hs-companiesThe IRS announced that they will be doing compliance checks on some organizations that declare themselves tax-exempt under section 501(c)(4), (5) and (6). Please note, the questionnaire is optional and you are only eligible to complete it if you receive a letter in the mail from the IRS that includes a PIN, password, and source ID.

According the IRS, responses will help them understand these self-declared organizations and help to determine if they complying with the law